SpaceX Earnings Drive Analyst Price Targets to New Highs

The core tension for investors right now is whether SpaceX can sustain its explosive growth without burning through cash, but the company just handed analysts a reason to believe it can. Following a bullish third quarter report released after the market close on October 20, Wall Street moved quickly to raise price targets. This shift reflects a growing conviction that the firm is becoming a powerhouse in both launch and artificial intelligence. For those following the market, this represents a significant pivot in how the industry views the company's long-term earning potential.

To understand the current excitement, look back at the financials from last night. SpaceX reported revenue of $14.6 billion, a 161 percent increase over the same period last year. This figure comfortably surpassed the consensus estimate of $12.7 billion. The company also swung from a loss in the prior year to a net profit of $4.4 billion, with adjusted EBITDA reaching $8.8 billion. This financial turnaround was driven largely by the Super Intelligence division, which generated roughly $7.6 billion in revenue. That segment saw nearly 830 percent year-over-year growth, making it the largest revenue contributor. Meanwhile, the Connectivity segment brought in $5.2 billion, lifting the Starlink consumer base to 13.6 million subscribers.

The earnings call added fuel to the fire. CEO Elon Musk and CFO Bret Johnsen outlined first-quarter 2027 revenue guidance of $33 billion to $37 billion. This projection far exceeded the roughly $22 billion that analysts had modeled. Management also detailed fourth-quarter capital expenditure plans of $35 billion to $40 billion, focused heavily on AI compute infrastructure at sites in Memphis and Southaven. The goal is to reach 2.5 to 3 gigawatts of nameplate compute capacity by year-end, with pathways to 13 gigawatts or more by the end of 2027. Musk noted that demand from hyperscalers is relentless, and compute pricing supports payback periods of less than a year, potentially as short as six months.

The market response has been immediate and sharp. Shares, which closed at $147.79 on October 20, jumped roughly 8 percent in early premarket trading on October 21. Analysts are citing the strong quarterly results, Starship orbital successes, and V3 satellite deployments as key drivers. JPMorgan more than doubled its target to $500 from $240, maintaining an Overweight rating. Other major firms followed suit with significant increases: Cantor Fitzgerald raised its target to $345, Barclays to $300, and Citi to $240. UBS moved its target to $230, while TD Cowen raised it to $224. Morgan Stanley held an Overweight rating with a $300 target, and firms like Wells Fargo and Clear Street also adjusted their outlooks higher.

Looking ahead, the focus will shift to execution. The company plans to continue expanding its spectrum and enterprise momentum while rapidly adopting Grok Bot. Special committees are also exploring a possible combination with Tesla. As investors digest these results, the elevated spending remains a point of focus, but the broader consensus is that SpaceX is on a strong trajectory across its launch, connectivity, and AI businesses. The average analyst price target has moved higher, signaling that the market expects this growth to continue well into the next fiscal year.